F-Secure Oyj · OMXHEX:FSECURE
F-Secure Oyj — Q3 2020 Earnings Presentation
18 slides from F-Secure Oyj's earnings presentation, 2020
Slide 1: Profitability improved further, revenue at the previous year's level
PROFITABILITY IMPROVED FURTHER, REVENUE AT THE PREVIOUS YEAR’S LEVEL Q3/2020 Samu Konttinen, President & CEO
Slide 2: Key takeaways from Q3/2020
KEY TAKEAWAYS FROM Q3/2020 Profitability improved further, revenue at the previous year’s level • EBITDA margin of 20% was supported by lower activity levels impacted by the COVID-19-pandemic • Corporate security products revenue grew slightly1 • Managed Detection and Response (MDR) revenue grew wel
Slide 3: Financial Highlights 1-9/2020
PROFITABILITY IMPROVED FURTHER, REVENUE AT THE PREVIOUS YEAR’S LEVEL (Financial Highlights 1-9/2020) EUR million 7-9/2020 7-9/2019 Change % 1-9/2020 1-9/2019 Change % 1-12/2019 Revenue 54.5 53.8 1% 162.3 161.2 1% 217.3 Consumer security4 25.0 23.4 7% 74.2 71.4 4% 94.8 Corporate security 29.5 30.3 -3
Slide 4: Corporate security products revenue grew slightly
CORPORATE SECURITY PRODUCTS REVENUE GREW SLIGHTLY1 (1-9/2020, EUR million) Revenue comparison Revenue from Endpoint Protection (EPP) solutions increased slightly, excluding the effect from discontinued products Q3 +2% YTD H1 • Growth of new orders clearly outpaced revenue growth 54.2 55.5 • Positive
Slide 5: Our corporate security solutions meet versatile customer needs
OUR CORPORATE SECURITY SOLUTIONS MEET VERSATILE CUSTOMER NEEDS Compromised – Pre-attack - PREDICT Attack - PREVENT DETECT & RESPOND ENDPOINT DETECTION & RESPONSE (EDR) VULNERABILITY ENDPOINT MANAGED DETECTION & RESPONSE MANAGEMENT PROTECTION (EPP) (MDR) F-Secure Protection Service for Business F-Sec
Slide 6: F-Secure Cloud Protection solutions monitor content exchanged on 3rd party environment
F-SECURE CLOUD PROTECTION SOLUTIONS MONITOR CONTENT EXCHANGED ON 3RD PARTY ENVIRONMENT F-Secure Cloud Protection products overview Complementing Salesforce security by monitoring Protecting content exchanged in the Microsoft Office exchanged content 365 environment Smart Cloud Advanced protection Sa
Slide 7: F-Secure Countercept adds value from many angles to our MDR customers
Attack like an APT F-SECURE Threat Respond like an COUNTERCEPTADDS Research expert VALUE FROM MANY ANGLES TO OUR MDR Analyze CUSTOMERS Improved security posture and reverse malware like a specialist Hunt like a data scientist
Slide 8: Cyber security consulting revenue decreased
CYBER SECURITY CONSULTING REVENUE DECREASED (1-9/2020, EUR million) Revenue comparison Revenue from cyber security consulting decreased by 8% Q3 • Delivering assignments predominantly remotely and innovating -9% YTD H1 new services / delivery models 35.6 • Significant regional and client variations,
Slide 9: F-Secure delivers most demanding cases globally for customers with critical data
F-SECURE DELIVERS MOST DEMANDING CASES GLOBALLY FOR CUSTOMERS WITH CRITICAL DATA Consulting capability: example customer cases in Q3/2020 LOCATION CUSTOMER VERTICAL CASE TYPE FIN Insurance Red Teaming FIN Critical Infrastructure Multiple cases DK Financial Institution Red Teaming SWE Critical Infras
Slide 10: Consumer security revenue grew by 7%
CONSUMER SECURITY REVENUE GREW BY 7%1 (1-9/2020, EUR million) Revenue comparison Revenue from the operator channel grew from the previous year’s level Q3 +4% YTD H1 • The growth in consumer security derives from F-Secure SAFE 71.4 74.2 • New operator deals in US and Asia including contracts for F- 7
Slide 11: Over 50% of top operator accounts are evaluating router security
OVER 50% OF TOP OPERATOR ACCOUNTS ARE EVALUATING ROUTER SECURITY F-Secure SENSE long term business opportunity Forces affecting the business opportunity Top of the class user experience 4-out-of-5 consumers Over 50% of F-Secure Diversity of router worry about their top 40 operator models household d
Slide 12: Adjusted EBITDA development
ADJUSTED EBITDA DEVELOPMENT (Q1/2019 – Q3/2020, EUR million) EBITDA margin of 20% was supported by lower Adjusted EBITDA activity levels impacted by the COVID-19-pandemic and growth in scalable consumer security. Adjusted EBITDA margin (%) The marketing and R&D costs are expected to start increasing
Slide 13: Deferred revenue growth driven by multi-year deals from corporate security products
DEFERRED REVENUE GROWTH DRIVEN BY MULTI-YEAR DEALS FROM CORPORATE SECURITY PRODUCTS (Q3/2019 – Q3/2020, EUR million) Deferred Revenue1 Deferred Revenue growth Comments Non-current Non-current • Majority of deferred Current Current revenue comes from corporate endpoint +3% security and managed detect
Slide 14: Solid operative cash flow due to good performance in receivable collection
SOLID OPERATIVE CASH FLOW DUE TO GOOD PERFORMANCE IN RECEIVABLE COLLECTION (Q1/2019 – Q3/2020, EUR million) Cash flow from operating activities before financial items and taxes Trade and other receivables +EUR4.2 m -EUR7.2 m 11.4 53.7 53.9 52.3 52.0 9.6 47.2 46.1 44.8 8.7 7.9 6.9 3.7 -0.3 Q1/19 Q2/1
Slide 15: Outlook 2020
OUTLOOK 2020 The company's outlook for 2020 is: •Revenue from corporate security products is expected to grow compared to 2019 •Revenue from cyber security consulting is expected to decrease compared to 2019 •Revenue from consumer security is expected to grow compared to 2019 •Adjusted EBITDA is exp
Slide 16: F-Secure. & o
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Slide 17: F-Secure's Q1-Q3/2020 in brief
F-SECURE’S Q1-Q3/2020 IN BRIEF (1-9/2020, EUR million) Revenue split & growth by business Revenue split & growth by geography Adjusted EBITDA Cyber Security Consulting -9% Nordics -4% Q3 Corporate Products +2% Europe (excl. Nordics) +2% H1 +EUR11.8 m Consumer Security +4% North America +24% 28.4 Oth
Slide 18: F-Secure.
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